A K-Swiss Inc. investor has sued the company over its pending $170 million acquisition by South Korean retailer E.Land World Ltd., alleging that executives of the sports brand should have been able to get more money for shareholders.
In a lawsuit made public in Delaware Chancery Court late Wednesday, David Raul also said that 75 percent of voting power is held by the Westlake Village company’s officers and directors, which will “essentially ensure that the proposed transaction will be approved” and discourages higher alternative bids.
K-Swiss announced the $4.75 a share deal on Jan. 17, which at the time was a 40 percent premium over the previous day’s close.
Raul has asked a judge to grant the case class or group status and stop the transaction under the current terms. The company has declined to comment on the lawsuit.
Shares on Friday closed up 1 cent, or less than 1 percent to $4.71 on the Nasdaq.